Allowing first time buyers to purchase existing homes would help more get into the market: REIQ

Sam Standfast and her partner Michael Leach are about to become First Home Buyers. Picture: Jamie Hanson

EXTENDING the first-home owners grant to include existing properties had the potential to put significantly more people into their own home, according to Queensland’s peak real estate industry group.

But the state government has rejected any change with its focus to remain on new construction as it also helped create jobs in the building industry.

The Real Estate Institute of Queensland wants the first homeowners grant, which was boosted to $20,000 for new properties until December 1, to also be available to buyers of existing properties.

REIQ CEO Antonia Mercorella said it would help more young people get into home ownership sooner.

But Premier Annastacia Palaszczuk said more than 8000 new homes, apartments and townhouses had been built because of the increased grant.

“It’s a great help to so many people and at the same time boosts investment in new housing stocks with flow-on benefits for local contractors, subbies and suppliers who rely on the building industry for their livelihood.”

Ms Mercorella said at the very least they wanted the grant to be able to be used for existing stock in regional towns.

“The anecdotal feedback that we get time and time again is that there is no point (claiming the grant),’’ she said.

“It’s a bit of a pointless grant for many first-time buyers in regional Queensland because often the cost of construction, even when you take into account the benefit you get from the grant, is usually significantly more than what you could pick up an established house for and we hear that story a lot.’’

But Treasurer Curtis Pitt said there was strong take up of the grant in regional areas.

Since July last year 387 grants had been awarded in Cairns, 246 in the Fitzroy region, 311 in Toowoomba and 464 in the Wide Bay region.

Property analyst Terry Ryder said for first home buyers existing properties were much more affordable.

He said despite the grant, the majority of first home buyers still bought established property.

“That is because they are significantly cheaper, often better located and the grant doesn’t go anywhere near making up the price difference.’’

Ms Mercorella said for some buyers there was also the issue of waiting for a new property to be built — which in the case of units could take years.

“You have go take into account that you need somewhere to live in the interim.

“That is one of the benefits of an established house, you know exactly what you are buying you can negotiate a settlement date and you can just move right in, so there is those sort of hidden additional expenses and hassle that don’t often get talked about.’’

Sam Standfast, 25 and her partner Michael Leach, 27 are keen to buy their first property.

They had something in their sights but missed out and are continuing to search.

Ms Standfirst said they were looking to buy something new, most likely a unit around the South Brisbane or West End area.

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If the first home buyers grant was available for existing properties it would expand what they would be able to consider buying.

“New property is a lot more expensive, you want to buy the best that you can with what you have got,’’ she said.

Despite that the couple are still keen to buy and hope to secure something soon.

“We haven’t really been looking very long at all, probably a couple of months,’’ Ms Standfirst said.

“When you look at the rental prices compared to the mortgage prices it made more sense that we might as well buy.’’

While they will likely end up with a new apartment Ms Standfirst said they hoped to buy in a project which would be finished early next year.

“We’d like to think we will be living in it in less than six months,’’ she said.

Michael Hatzifotis of Place Kangaroo Point has been showing Ms Standfast and Mr Leach, possible properties to buy.

“I get a lot of first home buyers that come to me,’’ he said.

“Now if the right property came around and it was a second hand property they (first time buyers) do forgo the grant of $20,000, but most of them try to use it. If they were able to use that $20,000 it would make a difference’’

Mr Hatzifotis said extending the first home buyers grant to existing properties would get a lot more people in the market a lot quicker.

He said the grant also limited where you could buy because there may not be a development in the suburb you wanted to live in for years.

With the boosted grant to be reduced in December the number of first home buyers he had been dealing within the past couple of months had increased by about 40 per cent.

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